Developer takes Selangor Government to court over land acquisition

KUALA LUMPUR: A developer is challenging the acquisition of its land in Ijok by the Kuala Selangor District and Land office.

Gaya Perkasa Sdn Bhd is applying to the High Court (Appellate and Special Powers) to quash the order made by the land administrator on Oct 6 last year.

It is asking for a stay over the order given to the land administrator.

It has named the Selangor Government, the land administrator, its district office, Selangor Housing and Property Board and the Selangor Mentri Besar as respondents in the application.

Judge Justice Abang Iskandar Abang Hashim set Dec 17 before a deputy registrar for parties to sort out documents for an inter-parte (between the parties) stay application hearing.

The judge fixed the date after meeting the parties in chambers yesterday.

Selangor state legal advisor Ahmad Fuad Othman, who acted for the state government and the land administrator, said that Gaya Perkasa was asking for the return of the land and compensation.

Ahmad Fuad said Gaya Perkasa bought the land after it was auctioned off by a bank.

“This developer (Gaya Perkasa) bought the land thinking that there was no liability attached to it. The land was acquired by the land office last year. It was later given to a private company by the Selangor Government.

“The government then took over the land from the private company to revive an abandoned housing project there,” he said.

Gaya Perkasa lawyers Chan Siew Cheong and Lim Fang Kee confirmed that the ex-parte (by one party) stay over the order was granted by the court on Jan 10. - The Star

郑两明：向每依格建87单位说不 PGCC效应恐蔓延全槟

（槟城22日讯）前槟岛市议员郑两明说，槟州政府在没有咨询民意下通过“每依格地段建87间单位”政策，将导致“PGCC效应”（槟城环球城中城）在槟城扩散，届时槟城随处可见40层或更高的建筑林立。行动党曾抨击PGCC计划

槟城环球城中城计划在308大选前，是当时还是反对党的行动党猛力批评的计划，因该计划要兴建40栋40层高的房屋计划、2间五星级酒店和7000个平地房屋单位，也引起人民激烈反弹。

郑两明说，308大选民联执政槟州后，却在2010年静悄悄地通过一项政策，批准在每依格土地上兴建87单位，此政策若相比起槟城环球城中城计划，只是“小巫见大巫”，因该计划是以每依格兴建37单位为标准，87对37，足足超过2.4倍。

“若对比每依格建37间单位和民联州政府批准的每依格可建87间单位，那么原本高40层的建筑，将增加至96层，原本40栋的建筑，也将增加至96栋。” - 光华

Only World集团耗资4000万 翻新数楼层振兴光大

（槟城22日讯）槟州首席部长林冠英透露，在振兴光大的建议下，Only World集团将耗资4000万令吉提升，重建，装修及翻新光大5楼、59楼、60楼、64楼及65楼，让光大再发扬光大！

他说，有关的工程也包括装置2台在光大摩天楼建筑物外部，连接5楼至顶端65楼的高速观景电梯，以及翻新现有光大建筑内的4台电梯及等候电梯处，在5楼屋顶建造一个拥有餐厅设施的宴会厅，在从光大走道至5楼露天空间装置电动扶梯及进行其它机械，电气，土木与结构工程。

他继透露，单单2台观景电梯已耗资600万令吉，并预料在15个月内将完成装置。

租赁为期45年

他指出，有关光大楼层租赁予Only World集团是为期45年，而且该集团也获另15年的更新合约选择权。他强调，在上述建议中，光大59及60楼将设立具有国际水准的餐厅，并且这将由64及35楼的“终极”餐饮概念配合，以及即将装置的“天梯”，也将成为光大的最大吸引力。- 光华

Is it a good time to prepare a war chest?

The next six months ...

In such volatile times, what should people invest in? What will the next six months, or one year, hold?

The last couple of weeks, two developers suggested it may be a good time, or a good idea, to prepare a war chest. That means, liquidate some assets and get ready some cash. There may be something worthwhile to pick up in the next six months, they said.

Soon after that conversation, a real estate professional help to put the pieces of puzzle together.

Consider the following:

Barack Obama has retained his presidency. That means status quo in the United States, recovery will be fragile.

Spain may need a bailout. Eurozone may plummet further.

In October, Hong Kong joined Singapore in efforts to cool soaring property prices by targeting non-residents. The Singapore and Hong Kong property markets are two of the most robust in Asia. Foreign funds like both these markets.

Let us come back to our local property market. Two real estate professionals say the secondary property market, which one buys from owners and not from developers, has been slow the last six months.

Some say it is good that the market is taking a breather. Others say it is a sign of the times.

The valuer says a weak secondary mortgage market is an indication that there are weaknesses in the overall property market. The new launches, however, remain attractive partly because of the various freebies and developer's interest-bearing schemes.

The primary market, where one buys from the developer, remains strong because under the interest-bearing schemes other than a 10% downpayment, they do not need to pay until the project is complete, she reasons. Under construction properties have higher risk than completed ones.

Hong Kong and Singapore have put in place measures to deter purchases by non-residents because the third round of quantitative easing (QE3) by the US has induced a flight to risky assets and he considers property as one of them.

That seems to go against the grain of what many think today. The last couple of years, one of the reasons for the rise in property prices was because real estate was considered as “safe” and a good hedge against inflation.

The safe assets, he says, are inflation indexed bonds, treasury bonds and government securities. The flight to the East to risky assets and to properties is a signal for all of us to take note. This was confirmed by an economist who says when the flight reverses, the situation will be severe.

Malaysia seems to be chugging along well. Will Malaysia be able to withstand the onslaught, notwithstanding “the good news”, “feel good” factors today?

Properties look attractive because of the economic conditions around the world and because of the threat of looming inflation on the horizon. Property being a good hedge is a perception, the property professional says.

This flight to Hong Kong and Singapore may happen in a bigger scale in the next six months to one year, he says. That is what both Singapore and Hong Kong governments are trying to stem out. This flight to the East may create, grow and burst bubbles. Some of that money have slipped into Malaysia and it is up to regulators to keep an eye on the situation.

The solution is to create investment avenues. This is not easy for governments to do and it takes time.

Why create that war chest then if there is so much risk and volatility floating around? The days of long-term investments are over. To be wise in today's volatile times, one may have to be a trader, or a sort of trader. Have a basket of goods, and hopefully one balances out the other.

The holiday season is around the corner. A new year is about to begin. The investing template, like the investment climate, has changed.

>Deputy editor Thean Lee Cheng wonders if our finanacial planning professionals are reading the signals. - The Star

Fix the leak and the rest will flow

AN article that I read recently reminded me of the importance of always identifying and solving the root cause of a problem in order to achieve the desired result. It was about a country which had faced water shortages for years despite the fact that the country gets ample amount of rain.

More and more water reservoirs were planned but the desired result was not achieved. Upon close scrutiny, the root cause of the water shortages was due to leakages from faulty pipe lines. In some areas, water lost through leakages was as high as 40%.

Imagine if the problem of water leakages could be addressed as a top priority instead of building more reservoirs, the water shortages that had plight the country would have been reduced very affordably and significantly.

The article reminded me of the issue of affordable homes in Malaysia. Based on recently published statistics from National Property Information Centre (NAPIC), the total residential homes in Malaysia as at the second quarter of 2012 was 4.58 million. Low-cost houses and flats account for 23% (1.05 million) or nearly one in four of the total residential units. About the same percentage also applies as well in Kuala Lumpur and Selangor.

The debate still goes on whether the number of low cost houses and flats is sufficient but there is no doubt that there is a huge demand in the market for such units. Many qualified applicants have commented that it is difficult to find a low cost housing unit to rent.

According to a recent report in The Star, thousands of government housing units in Kuala Lumpur were being sub-let to third parties by irresponsible tenants at five times above the control rental price. The same report also stated that the number of applicants for low-cost units in Kuala Lumpur had reached 26,000 and many of them had been on the waiting list for over a decade.

Questions are being raised. Are these low-cost units occupied by the right group of people? Why are the owners or tenants renting out their units? Does it mean that they own or rent other such units as well? Should we focus on repairing the allocation system before building more homes if there is so much leakage?

For a long time, I have heard that many quarters have been sceptical about the process involved in the allocation of low-cost units. Now that the Government is scaling up its effort to build more affordable homes, this is a good time to immediately carry out an exercise to review and ascertain whether or not the allocation and implementation system has any leakages. Building additional units will never be sufficient to meet the demand if these leakages continue to exist.

To ensure that the review is carried out without interruptions or biases, the review panel should consist of both the authorities and NGOs. The process of receiving and filtering the applications, the filtering criteria and the final determination of the allocation would be the specific areas to review meticulously to ensure controls are in place and no abuses creep in.

Based on the principle that low-cost housing units are meant to provide shelter to low income earners, it is essential to ensure that there is a transparent and comprehensive mechanism to determine qualified owners as well as to ensure that no one can own more than one low-cost house.

As part of the review, some commendable practices in other countries should be considered for adoption. For example, the Singapore HDB (Housing and Development Board) flat owners-to-be are not allowed to own any other properties in Singapore or in any other parts of the world. For HDB flat owners who wish to sublet their flats, they must meet the minimum occupation period (depending on purchase mode and flat type) and obtain HDB's approval before they can sublet their units.

In Hong Kong, to qualify for a Housing Board flat, one must not already own a house or flat, and it must only be for own use. In London, the right to buy a council home comes with several conditions. For example, the applicants have to hold a public sector tenancy for five years, and the property that they wish to purchase must be their only home and is for owner occupation.

To implement a more effective housing allocation system, we may want to consider applying similar measures to deter owners or tenants from the blatant abuse of public and low cost housing units for rental yields.

Low cost housing is a significant subset of affordable housing. If the review confirms that there are leakages within the allocation system that have allowed “abusers” to choke the market for low cost units, the government and relevant stakeholders ought to immediately work out a solution to fix these leakages.

Water and homes are the key basic necessities of life for everyone. Imagine yourself living in an environment where it is difficult to get these necessities and then to find out later that if proper diagnosis had been made, the problem would have been reduced tremendously. The key is: “Do it once, do it right”. The solution can be as easy as fixing the water leakages rather than building more reservoirs.

> FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please emailfeedback@fiabci-asiapacific.com. - The Star

Escape Adventureplay opens its doors in Penang’s Teluk Bahang

GEORGE TOWN: Escape Adventure­play, the first phase of the Escape Theme Park in Teluk Bahang, has opened its doors.

The RM18mil Adventureplay, touted as the first of its kind in Penang, utilises existing jungle trees in its 2.8ha grounds for the many adventurous games and challenges.

There is an extraordinary array of leaps, climbs and zip lines emerging from these trees to create a place where fun reigns supreme, regardless of what the participant’s age is.

Natural sounds from the forest gives the park the extra edge, besides the fresh air and natural sunshine.

Sim Choo Kheng, founder and chief executive of Sim Leisure Group, which operates Adventureplay, said the park would promote eco-friendly values.

“Most people would expect a roller-coaster or mechanical water rides in a theme park but here, we want to promote outdoor activities for children and adults alike,” he said.

“We have redefined theme park’s concept. You challenge yourself actively, rather than just sitting on passive rides,” said Sim.

“It’s much more exciting and healthier, especially, for the children today who live a more sedentary lifestyle.”

Adventureplay, which took a year to complete, opened on Friday.

Among the major attractions is the Atan’s Leap, a freefall adventure with gentle and secure landing which is a must-try, especially for bungee-jumping enthusiasts.

The tall tower structure consists of three levels of elevated platforms from 13m to the highest 30m.

Visitors can also sit on a Tubby tube in the Tubby Race, a gravity ride through a twisting and turning journey.

Gekko Tower, which is a set of climbing towers on which participants can choose their path to reach the top of the obstacle, also promises a bucketful of fun.

There are also foodstalls serving local delights for the visitors.

Sim said he expected about 350,000 visitors to the park annually.

He said the entire Escape Theme Park, which comprised three main components – AdventurePlay, WaterPlay and a Treetop Hotel, would sprawl 17.8ha and was expected to be completed in 2017.

Adventureplay’s opening hours are from 9am to 6pm daily. Entry fee is RM45 for children aged four to 12 and RM60 for those aged between 13 and 60.

Malaysians get a 20% discount. Entry is free for children below four and MyKad holders aged above 60. - The Star

CM: Only 42 have applied for funds to upgrade flats

BUKIT MERTAJAM: Only 42 management representatives of low-cost and low medium-cost flats have so far applied for funds from the Housing Assistance Programme of Penang, Yes! (Happy!), Chief Minister Lim Guan Eng said.

He said the state government was disappointed with the figure as there were about 600 housing projects in the state that stood to benefit from the programme.

He said the state had, in September, allocated RM50mil under Happy! to supplement the remaining costs to upgrade buildings that were not covered by the Federal Government’s 1Malaysia Maintenance Fund (TP-1M) programme.

“So far, we have received 21 applications from the island and 21 from the mainland for funds under Happy!

“We hope more management corporations (MC), joint management bodies (JMB) and residents association (RA) will submit proposals to apply for funds from both the TP-1M as well as from Happy!” Lim said when opening a briefing on Happy! at the Seberang Prai Municipal Council (MPSP) headquarters here yesterday.

He said under the RM500mil TP-1M programme, the Federal Government would bear 90% of the repair costs on low-cost flats while the remaining 10% would be borne by the residents, JMB or MC.

The ratio is 70% and 30% respectively for low medium-cost flats.

Since not many JMB, MC and RA could afford to raise the balance 10% and 30% for the low-cost and low medium-cost flats respectively, the state introduced Happy! to pay for the balance amounts, Lim said.

MPSP president Maimunah Mohd Sharif said the basic upgrading works to be carried out under the TP-1M programme were painting, rewiring as well as repairing the water tank and reticulation system, lift, roofing, sanitary pipes, handrails and damage to common property.

“Eligible JMB, MC and RA can seek help from MPSP and Penang Municipal Council to support their TP-1M applications by obtaining a guarantee from the state to settle the balance amounts using funds approved under Happy!” she said.

Of the 21 applications that MPSP received, Maimunah said eight had already been submitted to the Implementation and Co-ordination Unit of the Prime Minister’s Department.

She said MPSP was in the midst of helping those who submitted the remaining 13 applications that were incomplete. - The Star

It is 1,000 units

In our article titled ‘Long queue for homes’ published on Nation page 12, it was reported that ‘He (state Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai) said the Federal Government would build 70 units of affordable houses in Mak Mandin in north Seberang Prai while PDC and developer SP Setia would build 11,000 units of similar houses in Jalan S.P. Chelliah.’

It has been pointed out that the actual number of units should be 1,000 and not 11,000. The error is regretted. - The Star

Great response to condo project

THE SP Setia Bhd has received bookings for the majority of its latest condominium project, Setia Pinnacle, a Green Building Index (GBI)-certified luxury high-rise residence in Sungai Ara, Penang.

Group general manager (north) Khoo Teck Chong said the scheme, comprising 434 condominiums in a single 38-storey block which was in its soft launch phase now, would be officially open for sale next month.

He attributed the overwhelming response to its attractive pricing at RM514,000 for a unit with a built-up area of 1,095sq ft.

“Those units with built-up areas of 1,515 sq ft are priced from RM700,000 onwards,” he added.

Most of the buyers were locals looking for their first homes rather than investors who already owned property, according to Khoo.

“Purchasers will only need to pay 1% of the purchase price to own a unit at Setia Pinnacle and the rest of the package includes a 9% rebate, zero-interest absorption by the developer and free legal fees and stamp duty on sales and purchase agreement and loan documents.

“This package will only apply to early birds who register,” said Khoo yesterday during the preview at its show gallery.

He said Setia Pinnacle was designed to maximise its locational assets while providing SP Setia’s signature ‘LiveLearnWorkPlay’ living experience.

The experience, he explained, begins the minute the resident enters the private driveway leading to Setia Pinnacle.

“This gently curving driveway, bordered by lush greenery that reflects the forested hill behind Setia Greens, insulates the Setia Greens residents from the additional traffic.

“More importantly, it provides residents of Setia Pinnacle with a sense of exclusivity as well as a calming transition from the outside world to a serene homecoming,” he said.

As one of the first GBI-certified buildings in Penang, Setia Pinnacle will set a benchmark for other green buildings starting from the initial groundbreaking phase, according to Khoo.

“SP Setia takes great pains to ensure that our construction activities are as sustainable as possible, for example, minimising earthworks, pollution and wastage,” he said.

As a GBI building, Setia Pinnacle is designed to cut down on heat absorption.

“For example, the building has insulated reinforced concrete roof, rooftop lawn as well as large overhangs like copings and balconies that act as sunshades to cut down heat absorption,” said Khoo.

“There are also treated glass windows, vertical green walls and planter boxes which not only add to the aesthetics of this building but also help reduce heat absorption.

“A rainwater harvesting system will be put in place for watering plants,” he added.

He said: “Low volatile-organic-compound paints will be used throughout the building.

“All rooms in every apartment will have direct natural ventilation.

“Every bathroom and kitchen will also have water efficiency fittings.”

Scheduled for completion in 2016, Setia Pinnacle is designed with facilities spread over two floors, called the Green Pavilion at level 8 and Sky Pavilion at level 38.

“The Green Pavilion floor comes with an infinity lap pool, children’s splash pool with water slides, and walkway cum jogging track,” said Khoo.

“At level 38, the highest floor, the Sky Pavilion is a semi-open air area with a beautiful landscaped lawn, offering the perfect vantage point from which to enjoy the amazing views or a natural setting for taichi and yoga sessions,” he said. - The Star

China tops MM2H programme

KUALA LUMPUR: The number of Chinese nationals taking part in the Malaysia My Second Home (MM2H) programme is expected to increase in the next few years and spur domestic economic activities.

There were 3,332 Chinese participants as of August, making it the highest number of all MM2H participants, said Tourism Minister Datuk Seri Dr Ng Yen Yen.

From January to August, 475 Chinese nationals joined the programme compared with 133 the same period last year, she said.

“We expect to see a substantial increase in the number of participants from China from next year onwards,” she said during the memorandum of understanding signing ceremony between the Ministry and the Bank of China (BOC), for the latter to promote MM2H to all its bank customers through its branches in China and other parts of the world.

Dr Ng pointed out that with 10,961 branches in and outside China (six in Malaysia), the bank has 300,000 high net worth (more than US$1mil) customers.

Since 2002 until August, the MM2H programme had successfully attracted 19,488 participants from 120 countries and after China, the other highest participants were Bangladesh (2,407), Japan (2,187), Britain (1,889) and Iran (1,211).

Dr Ng said Malaysia needed to maintain its economic vibrancy not just by drawing tourists in but also by getting them to stay longer.

The programme had also spurred the property market, as 1,659 pieces of property worth RM1.5bil were bought under MM2H from 2007 to 2012, she said.

For the programme, successful applicants are given a 10-year social visit pass with a multiple entry visa which is renewable for as long as they like. besides enjoying tax-free income from abroad.

Ambassador of China to Malaysia Chai Xi said he foresaw the number of Chinese nationals participating in MM2H to triple in five years.

He added that Malaysia was one of the nicest countries in the world to live in while Bank of China chief executive officer Zhen Jingbo said he would promote MM2H to attract Chinese entrepreneurs and individuals from greater China to invest here.

At another event, Dr Ng launched the book Enchanting Malaysia, which tourists could buy as souvenirs. - The Star